Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. The comparative balance sheets for Beneteau Company appear below: BENETEAU CORPORATION Comparative Balance Sheet 2017 2016 Assets Cash $37,000 $31,000 Accounts receivable (net) 80,000
1. The comparative balance sheets for Beneteau Company appear below:
BENETEAU CORPORATION Comparative Balance Sheet | |||||||||
2017 | 2016 | ||||||||
Assets | |||||||||
Cash | $37,000 | $31,000 | |||||||
Accounts receivable (net) | 80,000 | 60,000 | |||||||
Prepaid insurance | 22,000 | 17,000 | |||||||
Land | 18,000 | 40,000 | |||||||
Equipment | 70,000 | 60,000 | |||||||
Accumulated depreciation | (20,000 | ) | (13,000 | ) | |||||
Total assets | $207,000 | $195,000 | |||||||
Liabilities and Stockholder's Equity | |||||||||
Accounts payable | $12,000 | $6,000 | |||||||
Bonds payable | 27,000 | 19,000 | |||||||
Common stock | 140,000 | 115,000 | |||||||
Retained earnings | 28,000 | 55,000 | |||||||
Total liabilities and stockholder's equity | $207,000 | $195,000 |
Additional information: | ||
1. | Net loss for 2017 is $12,000. Net sales for 2017 are $250,000. | |
2. | Cash dividends of $15,000 were declared and paid in 2017. | |
3. | Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. | |
4. | Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. | |
5. | $12,000 of bonds were retired during the year at carrying (book) value. | |
6. | Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. |
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). If answer is zero please enter 0, do not leave any fields blank.)
2. Compute the following cash based ratios. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Current cash debt coverage | times | |
Cash debt coverage | times |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started